The mood in Germany’s residential construction sector has eased a little at the beginning of the year. In January, the business‑climate index rose from -22.7 to -20.9 points, the Munich Ifo Institute announced on Monday.
Companies reported feeling slightly more satisfied with their ongoing operations, and expectations also improved. “The construction industry remains in a holding pattern” said Klaus Wohlrabe, head of the Ifo surveys. “It will take patience until the increased apartment‑building permits translate into contracts”.
Nonetheless, little impact is yet felt in the day‑to‑day business. In January, the share of residential‑construction firms reporting a shortage of orders grew from 47.7 % to 49.8 %. The proportion of firms reporting cancelled projects stayed almost unchanged, falling slightly from 11.5 % to 11.1 %. “Additionally, the icy weather reduced construction activity in many places during January” Wohlrabe added.
